LIC’s New Endowment Plan is a participating non-linked plan which offers an attractive combination of protection and saving features. This plan offers so many benefits to the policy holder. Policy holder can has many options in policy term to choose as per his requirement or fullfillment. 

In LIC’S New Endowment Plan policy holder wants to pay premium till entire policy term. If policy holder survives upto his term maturity he will get Sum Assured + Revesionary Bonus + Final Additional Bonus.

LIC'S New Endowment Plan Key Features :-

  1. LIC New Endowment Plan is a non-linked participating traditional plan.
  2. Plan pays simple revisionary bonus at maturity or death whatever will be the condition.
  3. Policy holder pays premium throughout the policy term.
  4. There is lumpsum sum assured rebate in this plan.
  5. This plan gives guranted return and bonus.
  6. Policy Holder can add Accidental death and disability rider in this plan.

Benefits :-

Death Benefits :- If death occurs of the policy holder within the Policy Term, the Nominee would be paid the “Sum Assured on Death” +  Bonuses as Death Benefit and the policy would be terminated. “Sum Assured on Death” is defined as higher of Basic Sum Assured or 10 times of annualised premium. This death benefit shall not be less than 105% of all the premiums paid as on date of death.

Maturity Benefit :- If policy holder survives till policy term in maturity he will get Sum Assured + Revisionary Bonus + Final Additional Bonus. And policy will terminate.

Participating In Profits :- If company gives bonus in current financila year as per profit or loss revisionary bonus will be calculate on that basis.

Final Additional Bonus may be given to the policy holder when the policy results into a claim under death or maturity. 

Income Tax Benefit :- Policy Holder pays premium upto Rs. 1,50,000  are allowed as a deduction from the taxable income each year under section 80C. 

For LIC’s Jeevan Lakshya Plan Features, Benefits, Maturity Amount :- lics-jeevan-lakshya-plan-no-933

Eligibility Condition In LIC New Endowment Plan

Additional Features :-

Riders – Policy Holder can take additional rider benefit in lic new endowment plan.


1) Reversionary Bonus – 

this bonus is declared at the end of financial year per thousand Sum Assured. 

2) Final Addition Bonus :- If policy has run for some specific time period after that only this bonus is payable.

Let us understand with an example:

Tejas has purchased a LIC New Endowment Plan for 30 years and for Sum Assured of Rs 10 lacs. Now, if the Reversionary Bonus for a particular year is Rs 30, then as follows :
Bonus calculated = 30/1,000 X Sum Assured = 30/1,000 X 10,00,000= 30,000 for that year.
If the Bonus is given to be the same every year for the entire policy term of 30 years, then his  Reversionary Bonus = 30,000 X 30 = 9,00,000
The Final Addition Bonus does not get multiplied by the number of years. Thus, if Final Addition Bonus is Rs.200 per thousand Sum Assured, and Final Additional Bonus gives only one time then Final Additional Bonus would be calculated as Rs 200/1,000 * Rs.10,00,000 = Rs.2,00,000
Total Bonus calculated = Reversionary Bonus + Final Addition Bonus
Total Bonus calculated = Rs.9,00,000 + Rs.2,00,000 = Rs 11,00,000 

Calculate your premium :-